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Nvidia’s Major Investment in OpenAI
Nvidia announced a historic agreement to invest up to $100 billion in OpenAI on September 2, 2023. This strategic partnership focuses on developing AI infrastructure projects, including the ambitious Stargate initiative aimed at building $500 billion worth of AI infrastructure in the U.S. by 2029.
Financial Performance Amid Challenges
Despite being barred from selling its chips in China, Nvidia reported second-quarter revenue of $46.7 billion, marking a 56% increase year-over-year. The company also forecasted third-quarter revenue of $54 billion, up from $35.1 billion the previous year. This demonstrates Nvidia’s resilience as it navigates geopolitical challenges while pursuing significant growth opportunities.
Future Outlook
With the partnership aimed at achieving artificial general intelligence (AGI), Nvidia’s stock saw an increase to an all-time high of $191.05 on October 2, 2023. The investment is expected to require millions of Nvidia GPUs, enhancing demand and potentially leading to substantial revenue growth in the coming years.
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